SIA in for another challenging quarter

SOFTER operating figures in October for Singapore Airlines (SIA) seem to hint that the financial third quarter ending Dec 31, 2016, could miss expectations, following a disappointing second quarter.

Some analysts have flagged that the numbers don't bode well for the third quarter, even though the three- month period is typically boosted by the year-end holidays.

"Q3 is traditionally peak period and the street expects earnings to improve in 2HFY17," said UOB Kay Hian analysts K Ajith and Sophie Leong in a report, suggesting an entry price of S$8.90 for the stock and a target price of S$10.10. "The weak October numbers do not add to confidence."